How we calculate what a car really costs
By Mihir · Updated November 2026 · Numbers from the CarBudgetFit calculator
Every number on CarBudgetFit comes from the same simple model. Here is exactly what goes into it, so you can judge how far to trust it and where your own numbers will differ.
The monthly cost we show
All-in monthly cost = loan payment + insurance + fuel or charging + maintenance and repairs.
- Loan payment. We take the car price, add sales tax (6% by default) and $600 for title, registration and dealer fees, subtract your down payment and trade-in, and use the standard loan formula with the interest rate for your credit level and loan length.
- Insurance. A typical full-coverage monthly premium for that type of car. Used cars are set 8% lower. "Less than most" and "More than most" in the calculator multiply it by 0.8 and 1.4. If you enter a ZIP code, it is also adjusted for your state: the first three digits of the ZIP are matched to a state, and the premium is scaled by that state's average full-coverage rate compared with the national average of $208 a month. The ZIP code stays in your browser.
- Fuel. Your yearly miles divided by the car's fuel economy, times your gas price. Luxury models that need premium fuel add $0.80 a gallon. Electric cars use 0.29 kWh per mile at your electricity rate, plus 15% for charging losses.
- Maintenance and repairs. A monthly average for that type of car, higher for used cars, scaled to how many miles you drive. When you paste a listing, it rises further with the car's mileage.
How we decide what "fits"
We compare the all-in monthly cost with the budget you enter:
- Comfortable fit 90% of your budget or less
- Fits your budget 90 to 100%
- A stretch up to 12% over
- Over budget more than 12% over
"Most you could pay" works backward: it takes your budget, subtracts insurance, fuel and upkeep, and finds the largest loan the rest can cover, then adds your down payment and trade-in and removes tax and fees.
Interest rates by credit level
These are typical average APRs for new and used auto loans in late 2026. Credit unions often beat them; dealers sometimes advertise lower promotional rates on new cars.
| Credit | New car loan | Used car loan |
|---|---|---|
| Excellent | 5.2% | 7% |
| Good | 6.9% | 9.5% |
| Fair | 9.8% | 13.8% |
| Rebuilding | 13.5% | 18.5% |
Types of car and their averages
New prices are typical transaction prices for each type. Used prices are for a car about 3 years old. When you choose a specific model, we start from its published starting price, add about 12% for a mid-level trim or 28% for a top trim, and estimate the used price from how well that type and brand hold their value.
| Type of car | New price | Used price | Fuel economy | Insurance / mo | Upkeep / mo (new / used) |
|---|---|---|---|---|---|
| Compact carToyota Corolla, Honda Civic, Hyundai Elantra, Nissan Sentra | $25,500 | $19,500 | 34 mpg | $150 | $45 / $75 |
| Hybrid carToyota Prius, Corolla Hybrid, Honda Civic Hybrid | $30,000 | $23,500 | 50 mpg | $155 | $45 / $75 |
| Small crossoverChevrolet Trax, Subaru Crosstrek, Honda HR-V, Ford Bronco Sport | $26,500 | $20,500 | 30 mpg | $150 | $50 / $80 |
| Midsize sedanToyota Camry, Honda Accord | $31,500 | $24,500 | 36 mpg | $165 | $50 / $85 |
| Compact SUVHonda CR-V, Toyota RAV4, Nissan Rogue, Chevrolet Equinox | $35,000 | $27,000 | 30 mpg | $160 | $55 / $90 |
| Electric car or SUVTesla Model Y, Tesla Model 3 | $45,000 | $29,000 | EV | $195 | $30 / $50 |
| 3-row family SUVFord Explorer, Jeep Grand Cherokee, Chevrolet Traverse, Kia Telluride | $47,000 | $36,000 | 23 mpg | $175 | $65 / $105 |
| Entry luxury SUVLexus RX, BMW X5 | $52,000 | $36,000 | 26 mpg (premium) | $215 | $75 / $150 |
| Full-size pickupFord F-150, Chevrolet Silverado 1500, Ram 1500, GMC Sierra 1500 | $56,000 | $41,000 | 20 mpg | $190 | $70 / $110 |
Defaults you can change
- $4,000 down, no trade-in
- 5-year loan, good credit
- 12,000 miles a year, gas at $3.10 a gallon, electricity at $0.18 per kWh
- 6% sales tax
Your inputs are saved only in your own browser, so they are there next time you visit. Nothing is sent to us.
Sources and limits
- Model starting prices: TrueCar, November 2026.
- US sales rankings: GoodCarBadCar, January to September 2026.
- Safety and recall links: NHTSA and IIHS.
- Dealer locations: OpenStreetMap.
- Insurance by state: ValuePenguin full-coverage averages, July 2026.
These are planning estimates, not quotes. Insurance depends heavily on your age, ZIP code and driving record, and loan rates depend on the lender. Get an insurance quote and a loan pre-approval before you buy. Spotted something wrong? Corrections are welcome.
Try it with your own numbers.
Open the calculator →Common questions
How accurate is CarBudgetFit?
It is designed for planning, not quoting. The loan math is exact for the numbers you enter; insurance, fuel and upkeep are averages for each type of car. Most people's real all-in cost lands within about 10 to 15 percent, and an insurance quote is the quickest way to close the gap.
Why is the monthly cost so much higher than the payment?
Because insurance, fuel and upkeep usually add $280 to $500 a month on top of the loan, depending on the type of car. Most calculators leave those out, which is how people end up with a car that fits the payment but not their budget.
Does CarBudgetFit earn money from dealers or lenders?
No. It has no dealer, lender or affiliate relationships and no ads.
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